. >> thank you. >> eliot: that's "viewpoint" for tonight. have a great evening. i'll see you here tomorrow. and good luck. ♪ >> jennifer: i am jennifer granholm. tonight in "the war room. show down at the my2k corral. trouble on the high plains. plundering as they go and threatening to drag the entire town after a cliff. and what a deluxe of black hats, there is hop along boehner and mad dogma come and grover the fanatic with them. is there no one who can stand up to band of cattle thieves before all hope is lost? hold on. what's this? why, it's the sheriff and what's that he has with him? by god it's a mandate.

can he defeat the hole in the head gang and bring piece to the preys to the prairie? easing the burden on main street at last. you'll know soon enough dear viewer after the show down at sundown. ♪ ♪ ♪ ♪ >> jennifer: i love it. that, of course, is the iconic 3-way standoff scene from the classic spaghetti western "the good bad and the ugly" and i think that scene pretty much sums up what we are eying? our nations capital right now as the leaders lead leaders raftal over

the fiscal cliff. we have the good guys, fansing off, of course against the bad guys the republican and then there is the ugly the rabid right wing that threatens to derail the whoa process. it might seem like the dueling factions will need reach an agreement. but a few days ago john boehner said something very, very telling. he told politico, quote, which is a place for everything. hold everything. there is a price for everything. that, ladies and gentlemen is transactional politics at its finest. what will you give me to get what you want? so, today president obama dispatched his top economic advisor, his deputy to find out exactly what that price is. and that's treasury secretary timothy geithner net with the top four congressional leaders

pelosi, ma con el, mcconnell and reid and he brought a specific plan from the white house with him. that plan from the president in trying to resolve the fiscal cliff asks for, $1.6 trillion in new revenue. and that's supposed to come from raising taxes on the wealthiest. the president's plan asks for an extension of the payroll tax cut. and an extension of unemployment insurance benefits. it asks for a deferral of those automatic sequester cuts to defense spending and to local -- to domestic spend being. and it also asks, i love this one, a multi-year stimulus package, including $50 billion next year, much of that is going to go to recipients creating an infrastructure bank. the president also wants to refinance under water mortgages. and permanently increase the deposit limit without congressional approval every time.

the president in bringing this list forward in his plan to resolve the fiscal cliff is just really going for it in this negotiation. he's aiming for the fences, and he has a mandate folks and he's not afraid to use it. here is representative jim chicago burn elaborate on the ground that theme today. >> us democrats ran with the president on this plan of his and we received democrats almost a million more votes than our republican friends did in this past election. so we think the time for posturing is over. >> jennifer: in fact, the president's plan itself demonstrates that he knows that he has a mandate. and believe it or not that large wish list is actually a gift to the republicans. why? because it expand the negotiating table so that the republicans can respond by rejecting pieces of it.

the rejection of those pieces is like a gift to them. so how did speaker boehner respond? how did he react to that plan? he didn't thank the president that's for sure. >> first despite the claims that the president supports a balanced approach, the democrats have yet to get serious about real spending codes. and secondly, no substantive progress has been made in the talks between the white house and the house over the last two weeks. >> jennifer: okay, so in front of the cameras he's still playing hardball. so john boehner has to come back with his own plan and then they can hash something out in the middle. maybe in the middle, maybe toward the president. here is what we think the republicans are going to off in their plan, or at least components of it. last summer john boehner initially agreed to increase revenue by about $800 billion, that was before his caucus yanked him back.

that might be where they start. they are saying that they don't want any tax rate increases but they might be open to other sources of revenue like closing loopholes in the tax code. and they will ask for savings through reforms to medicare and medicaid, read vouchers. and also want to eliminate the sequester cuts to defense spending that are automatically supposed to take place. and the good news is that speak are boehner might have less of a problem from the ugly wing of his party at least than what he got before. because yesterday grover nordquist sounded a little more reasonable than say before the republicans got shellacked in the election. he said that republicans can raise revenues as long as they can go home and pass the laugh test. in other words, as long as they go go home and tell their con switch went that they didn't actually raise tax rates without getting laughed at.

>> so it's gotta pass the laugh test. not just the moment it happens but between now and the next several elections. >> jennifer: so maybe he's not so ugly after all. i don't know, what am i thinking? at the end of the day the press has shown his hand. so mr. speaker your much. joining me now is nancy cook budget and tax correspondent for the national journal coming to us from washington d.c. welcome inside the war room. >> thanks so much for having me. >> jennifer: you bet. it's the speaker's move now what do you think he will ask for in addition to maybe what we have described here? and when do you think that he will come back with a plan? >> i think what we have to look for next week is, you know, the speaker coming back with some sort of plan that asks for more spending cuts. the president the initial plan that he put forward today

through secretary geithner had some $400 billion in spending cuts, that was a big gap between that and the revenue that the president was asking form i think the speaker will come back and say went much bigger spending cuts, we want them to take effect immediately along with any revenue that we want. and the speaker going to look for big drastic changes in medicare medicaid and perhaps social security. >> jennifer: i agree. and i don't know that -- i believe that social security will be absolutely a no go with this -- with the democratic congress. do you think that the plan today that the president put on the table shows that he's flexing a bit of his mandate muscle? do you think his negotiating strategy, for example, is different from the last time around in his first term? >> absolutely it is. during the debt ceiling negotiation the president had this idea if he just went to speaker boehner and just negotiated the two of them, that they are both reasonable people and that they can come up with a deal. i don't think that he really clearly understood at that point

how far apart the two parties are on these tax and spending issues. this time he's taking a totally different approach. i think the white house really thinks that it does have a mandate from this election, over 60% of voters coming out of exit polls said that they were in favor of raising tax on his the wealthy. i think the president is hearing that. and he's saying, you know, maybe i'll budge a little bit but there are going to be taxes that are going to go up. and part of the way that he's building public support for this is by not just going to members of congress and saying, you know, please work with me. he's also using outside groups like a labor unions, different progressive groups that helped electric him and then he's going around the country to start to talk to team to really put pressure on congress. and the risk, of course, is that the connection cans republicans can look bad if they don't agree. >> jennifer: for sure and he's using the business community. you have an article tomorrow that i got a sneak free view of and you wrote about a man named

david levine who made a lot of money on wall street and retired in his 40s and pays the investment on his overall tax rate end up to netting out about to 7%. in talking about that low tax rate, he told you it's pathetic, i have way more than i need. do you think that there is the political will for the president's plan to tax investment income the same way as earned income? >> i don't necessarily think that investment income will go as high as the taxes on earned income. so right now the taxes on capital gains and dividends are 15%, and that's a big difference from the top tax rate which is now 35%. but i do think that you know, some republicans have floated the idea perhaps of being okay with races tax on his investment income. i think the president in his past budget definitely talked about that. and i think that in a way although so much of the focus is on raising the marginal tax rates, you know, the way that we

typically think of individual income be taxed marginal tax rates and races the tacks on those is really an effective way to tax the wealthy. because the well identity disproportionately benefit from those type of low rates. >> jennifer: for sure. and, of course, we know that once they go over the fiscal cliff and those that -- that cap cal gains rate goes back to the clinton era it will be a 20% rate anyway. one way or another it's going to up. that's all i am saying. nancy took cook, thank you so much from the national journal thank you for join is us inside the war room. coming up, the car room is is not in the prediction business but we hear there is good money in it. so we are going to jump in. our best guess on how this negotiation will play out right after the break. plus what would thomas jefferson do with the fiscal cliff? funny you should and s author john meechum's new biography on the founder father sheds new light on the man and his method and he, john meechum will join us in the war room.

and later mitt romney finally got into the white house don't worry, though it was just for a bowl of chili. ititititititititititititititititititititititititititit

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thank you for joining me. >> thank you governor ernie appreciate it. >> jennifer: i am so excited about this, in an era where we are looking at fantastic presidential figures cesc especially with the movie lincoln unand all of that and a movie about f.d.r. coming out. >> it's a goodoment for d d pridents. jni r:fet is. iis and i mean, dude, this is a book. as we would say. so you have said that you think that there is some resemblance between president obama and thomas jefferson. why? >> i do. they tall, cool, cerebral writers and ambivalent and they are good at it. there is a kind of continuity there. and one of the things i want today do in doing this and you would appreciate this given your former day job is that politicians should be helped along, should be saluted in a way for getting into the arena and trying to solve the problems we have. jefferson was for 40 years a

working politician. he, yes, he did all of the wonderful things, you know, on his tombstone it says that he was the author of the declaration of independence, the author of the virginia statute to religious liberty and the founder of the university of virginia he was also the secretary of state, vice president, president legislator, dick mat. governor of virginia. he got into the arena and cut deals and tried to make a difference in real time and he did. >> jennifer: on a day when we were talkalling about the wranglers over the fiscal clip, what would he bring to the negotiationing? >> one would be seizing the initiative. al press announcing today what he wanted to do is hugely important were the second term clock ticks faster because it's the only clock. >> jennifer: sure. >> the president is on one clock and everybody else in the system has an election coming up. >> jennifer: yes. >> and so every day the political capital goes down and jefferson understood that. partly because he had because he had

not been a particular by good governor. >> jennifer: he had a sense of urgency. >> he washe had a scarlet o'hara moment he was never going to be caught hungry again. the other thing the president has shown a policy of is cutting dogma. cut a deal short of that. not that comprises itself is a virtue sometimes absolute i had logical purity is the right course. >> jennifer: you won't get it done if you are sit sticking there and that is the art of compromise. >> yeah. sen times out of 10 or so, i mean pick your number. the middle way is going to be okay. and jefferson said, this is jefferson, not me. the ground of liberty is gained by inches. he said that it is important to give as well as to take in a sells testimony such as ourssystem such as ours and he was cutting deals with alexander hamilton who he could not stand he said they were pitted like two cocks at war always, yet

when it at came time to site the capital on the potomac he gave up on a key financial issue to get it done. >> jennifer: so that art of give and take is obviously in the horse trading but he also had a way of shamussing i will say. >> right. >> jennifer: there today's par las that i think could be illustrative. >> well, it is. i think by pretty common ascent, president obama wouldn't agree with this, but i think almost everybody else would, that he has not been the most sociable guy with members of congress. and what jefferson did when congress was in session every night more or less, he had lawmakers down to dinner. he would write his daughter saying i am about to be an unpunk tal correspondent because i am about to enter enter into the business of the session, and a big part that have was having people in the president's hughes, up close and personal. not that he thought it would create a bipartisan simpsonism, but that it would in fact help

on the margins that people might be more likely to give him the benefit of the doubt if they had heard something directly from him. and contemporary evidence suggests that true. >> jennifer: apes to whoo people? >> at least neutral icize neutralize them which is a wonderful example of a new england senator a federalist from new hampshire who came in about 1803 thinking thomas jefferson was the evil incarnate because you had to believe that in new england: and he goes to dinner and spends time with jefferson by the end of jefferson's second term they are exchanging pican recipes. not that he's voted in a different way but that it helped the climate. and i think that's important. >> jennifer: one of the great things that you may have done is given the democrats a model like the president a model to be more inclusive in terms of his out reach but you might have given republicans a model too in

terms of don't be afraid of ca highs. >> you have to have a dance partner. >> the president, you know, if you invite people they have to come. >> jennifer: so you and i were talking just a minute ago about whether this might be made in to a movie. if you had to describe or to say what a favorite scene of yours was that might be most conducive to the big screen, what would that be? >> well, it's a tough -- you can't have any car chases so that's difficult. so in terms of -- it's no skyfall. but the louisiana purchase is a. >> jennifer: the louisiana purchase comes close. >> it's hot. i don't want to get you too excited about this exciting action flick that i have in mind. where is michael bay? but what jefferson did was in one of the highest stakes diplomatic deals ever, he totally reversed course. you get the letter on the 2nd 3rd of july 1803 saying france

is to sale this to us for nothing basically. jefferson says we must go to the people get a constitutional amend think this is not a power of hamilton or washington tried to do this without an amendment jefferson's head would vex would have exploded and then he gets a letter saying they are rethinking this. he has a moment of, shocked shocked that anybody would mention the amendment. he said we must not be so worried about constitutional nice at thises at this point. so it was a moment where he departed from dag ma to ensure the key thing in his life which was the survival and success of the american experiment. because there was no reason on earth to think that this was going to work. >> jennifer: it's a beautiful book. it is a fantastic large chapter in america's story. and nobody better to write it, really appreciate you coming inside "the war room" to share it with us. >> thank you. >> jennifer: that's jon meacham

author of thomas jefferson the arts of power. up next, after hearing about one of our founding fathers it's fit to go ask what would we do without the house of representatives? it's a loaded question if ever there was one we'll discuss their role in the fiscal cliff (vo) as marijuana gains social and legal acceptance, a new pioneer is emerging from the backwoods. >> i'm basically like a farmer. instead of corn, you've got dope. (vo) but what is legal and what is criminal? >> this is, no matter what you do, a violation of federal law. (vo) follow real farmers staking their claim on a new frontier. >> lots of terrible things happen to people growing marijuana. >> this crop to me is my livelihood. >> i have everything invested in this. [ male announcer ] red lobster's crabfest ends soon. hurry in and try five succulent entrees like our tender snow crab paired with savory garlic shrimp. just $12.99. come into red lobster and sea food differently. and introducing 7 lunch choices

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>> jennifer: as we crawl toward the fiscal cliff remember that president obama has the majority of the american electorate on his side.

he has the majority of the u.s. senate on his side too. but the one place he does not have the majority is the house of representatives, of course, where republicans out number democrats. that's the only place republicans have any leverage. so what will the democrats there do to help the president out? minority leader nancy pelosi offered insight to have at meeting with second of treasury quite miles an hour. ry geithner. >> there are tough choices it isn't easy but it's necessary, i have confidence that my republican colleagues will see the light. and at least pass a new tax cut so we have that legal of confidence and we can go from there. >> jennifer: sound like she is saying the republicans might not be tough enough to do the right thing. sound like she's got the president's back. now, to take us inside the house democrat i can caucus we are turn to go a great reliable source house democrat maryland congresswoman donna edwards

joins us from washington d.c. she was the first elected in 2008, she has a fresh perspective. thank you so much for joining us inside "the war room." >> thank you governor, it's great to be with you. >> jennifer: all right, let me get to the hot topic first off. what are your house colleagues saying about the status of negotiations? >> well, i think number one as you could hear from leader pelosi, i think that our leader is fully and fairly representing the prevailing viewpoint among house democrats and that is that this, in in is in some ways more simple than not. on november 6th the american people spoke loudly with the president about continuing the tax cuts for income earners under $250,000. and then allowing the rest of them to expire and then making sure that we have what is in effect about a trillion dollars

that could be put to definite reduction, could be put to spending that's necessary to get the economy fully going. and you know, in our view, you know, in our leader has said this the election was very clear, and i think republicans and house republicans in particular really have to come to their reality check about the result on november 6th, and what that will mean if they allow all of the tax cuts to expire at the end of the year. >> jennifer: well, so, and i want to talk about them in a second. let me ask you this about the democratic caucus, the more conservative december contracts, are you afraid of losing anybody? >> i don't think so. i think at this point, i mean, if you look, for example at votes to end the high income tax cuts, we have taken those before, we have taken those as a democratic caucus, there has been unhim at this allowing those to expiring while preserving middle income tax cuts, i feel confident about that which is why the president can have his pen poised to sign

with 200 almost 200 democratic votes, maybe another, you know, another 25 or so republican votes just for insurance speaker boehner doesn't have a heavy lift in order to do what's right by working people. >> jennifer: so if you had to look at what is a deal breaker for you what you are hearing from your constituents, we know the republicans will be pushing entitlement reform. what's a deal breaker for you? >> i have to tell you i think it -- we heard from -- we hear from our con constituents all across the country. no cuts for benefits to medicare medicaid and social security. social security should be completely off the table because it doesn't have anything to do with our long-term debtor our deficits. and you know, to the extent that there are ry form, there are reforms from medicare built in to the care act if enabled to play out over the next decade will result in a lot of savings and if you want to do anything with medicare negotiate precipitation drug prices.

>> jennifer: did the president put the amount of money that was put on the table in terms of the proposed cuts, and included about $400 billion to medicare, did those -- were those the previously -- is that stuff that embedded in the affordable care act or that additional savings? >> it is. i look at that as i have looked at it as additional savings, we have to obviously see what's full out, you know, the table in negotiations. but, again those savings net billions of dollars of savings built in to the affordable care act over the next 10 years instead what we have heard from republicans even as late as the last couple of days, is a continuation of about repealing the affordable care act which would result in increasing our deficit. and so republicans really have this a little bit backwards. >> jennifer: well, so as part of the deal today the white house was calling for $50 billion infrastructure bank i was excited to see that. you are a member of the transportation and infrastructure committee.

can that survive house republican cuts? >> well, it should. i mean, i have a broad smile on my face about infrastructure because we know and you know as a former governor, that the infrainfrastructure across this country is following apart if we invest in it we create jobs and grow jobs and and put us in global competition in the economy, i hope it does survive i think republicans and democrats recognize across country that we haven't done nearly enough for infrastructure spending and i think there is broad support for that across the board republicans and democrats. >> jennifer: just really quickly, i mean, i totally agree with you, this is a bit i've different mechanism funding infrastructure bank as opposed to direct spend on infrastructure projects, some republicans had proposed that in the past. do you think that will actually fly? >> they have. and, in fact in the hong kong congressed

idea for the bank had been on the table and the question has been how are we going to make those investments how will we encourage and incentivize the investment that would enable us to spends. but we have it right here if we can create the savings that we need in terms of reducing some of our spending where it's necessary, and where it's over spend, but recognizing that we have to make those investments in order to create the kind of economy that we need. i think that there are the hallmarks of a deal here and you know, the speaker has a task of going back to his leadership, bringing them to the table but the president is in the right place, he's in the strongest negotiating position and they oath very a choice, let the tax cuts expire at the end of the year or come to the table with a real deal. >> jennifer: it's very exciting time to watch. very exciting time for anybody who follows strategy and negotiations as well.

maryland congresswoman donna edwards, thank you so much for joining us inside "the war room." >> thank you governor. >> jennifer: you bet. up next, jobs, jocks jocks jobs, jocks we talked a little bit them. we are going to talk more about them. find out what president obama is doing and should be doing to kick tart the u.s. manufacturing sector >> wow! i've never seen anything like this. >> when disaster strikes sometimes the only way out is to look within. current tv digs deep into the extraordinary tales of heroism determination and escape. "trapped" experience the drama. back to back to back. >> hold on mates! >> catch the "trapped" premier mini-marathon this saturday starting at 1 eastern. on current tv.

>> jennifer: president obama has made it crystal clear that revitalizing the country's's industrial base jobs is going to be a top priority in his second term and just one of the topics that i touched on in a great recent interview that i had with leo hendry, he's the chair of the advisory council for the smart globalization initiative. and i started by asking him if the election sent congress a message about job creation policies. >> you know firsthand that every election carries a lot of messages, but president obama himself has concluded that the one just past was sort of an impetus to get the middle class back together financially and otherwise. and as governor of michigan, the best thing that we could do for this nation right now as you know, former governor of michigan is to get balance back in the work force. and i think there were very strong messages that the nation, as evidenced by votes in your

old home state of michigan, ohio pennsylvania, really throughout the industrial midwest, was saying to the congress specifically, we need a manufacturing policy of our own. we need to have as many as two and a half times more women and men in the manufacturing sector, governor than we have today. and they have to be paid fairly, they have to have fair trade policies that sustain their employment. we just have to get this economy as you said repeatedly, back in balance and that's probably the best place to start. >> jennifer: totally agree. totally agree. so we are on the same page. so let's get to the specifics. what would you suggest in terms of specific policies? give me a couple of examples of policies that you think would had he been bring manufacturing back? >> well, the gating policy, governor is to have a manufacturing policy. every one of the g20 minus only

ourselves has very specific policies that they call industrial policy, manufacturing policy and for a variety of political reasons not very good reasons, we don't have such. but we have to get moving quickly as the president has said in the post election period. and probably the best thing that we could do right now governor, is a national infrastructure bank in your home state and every other state of the union we know that we have a very deteriorated infrastructure base, that's probably the most intimate thing that we could do to reenergize manufacturing. the second thing is buy domestic, buy american, not anymore harshly or precisely than the other g20 nations do, but, again we alone in the g20 governor, are the only ones that let our government buy freely from other countries and we don't. and then we have to pay

particular attention to our trade with china. >> jennifer: talk about that. what should we be doing to level the playing field? >> well, you had such a firsthand role in sort of turning around the automobile industry in the midwest with the bail out and unfairly, a lot of women and men in this country blamed the wages of the workers of michigan as an example for the problems of gm and chrysler. the reality governor, is that unfair trade is about 90% of the cost differential between a good manufactured in say michigan, ohio and its counterpart in china. and it's unfair trade. i am not -- i am very much a free trader as you are but i am very much as well a fair free trader and illegal subsubsudden is currency manipulation, environment practices that don't mirror the rest of the developed world are causing our manufacturing companies our

manufacturing workers to just suffer a burden that they shouldn't have to. >> jennifer: leo, are you encouraged, though, by the actions at least that the obama administration has been taking of late at the world trait trades trade organization to his try to prosecute those and level the playing field? >> i am. i am also happy about the president's enthusiasm for the mandate that he just got. i think the electorate spoke very clearly spoke very clearly at the presidential level they did know less so at the sen sat level and house level. and they said with great specificities, get this economy back on track in a balanced fashion where we have women and men in manufacturing at roughly two and a half as much as three times the level we have today. >> jennifer: you wrote a piece though, in the huffington post, recently criticizing the president's jobs act saying it was too small by several factors and just the last minute that we have, can you explain what you meant. >> well, i think that we have to

be honest about the degree of real unemployment that we have in the nation, governor. it's fully twice the official rate and that's many millions of women and men that we have to get back to work. and i will endorse as you will any job initiative. we have to be realistic about the magnitude of the challenge. i like the program it's just too small. >> jennifer: we need to be bigger and bolder and it's all about creating jocks leo i love talking to you because i am so glad to see sane people talking the importance of having manufacturing policy in america. gentlemen, it's a form of industrial policy, yes it gets all the free market capitalist pants in a wad but i am telling you if everybody else is doing it and we are not we will continue to lose. leo hendry of the new mirk foundation, thank you so much for joining us. >> thanks, governor. >> jennifer: up next, in some

countries, those who try to gain control of power and fail tar sent in to to exile or worse in america, they get a bowl of chili. that story is next right i think the number one thing that viewers like about the young turks is that we're honest. they can question whether i'm right, but i think that the audience gets that this guy, to the best of his ability, is trying to look out for us.

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>> jennifer: now to an update on a story we told you about last night. the latest in the twinkie saga. things are looking up for the top executives at hostess but not so much for the workers. today a new york bankruptcy judge gave hospital tess permissionhostess permission topay its top executive up to $1.8 billion in bonuses during lexliquidations but the attorney

said the company cannot afford the $1.1 million in recipients they benefits that it pays to the workers each month. my suggestion, turn the company over to a class of fourth graders. at least they know how to share. if you saw tuesday's show you know that i really love my chevy volt. but i am not the only one today consumer reports announced that the electric car the chevy volt took the top spot on its annual owner satisfaction survey. 92% of volt owners say that they would buy it again. it's the second straight year that volt has topped the survey. and the toyota prius and nissan leaf rounded out the top three. so hey gasoline engine, consider yourself on notice. and finally finally today the thing we have all been waiting for, the president actually had mitt romney in the white house. he got a chance to check it out not with an army of interior

designers, but to meet the president the momentous occasion had the white house press corp. asking a lot of sill questions. silly questions. >> did the white house zipped a car for mitt romney? >> i am not ware that we did. i don't know the answer to that question. >> is the president offering governor romney a job? >> i just don't have a read on that. >> jennifer: i do. believe me. before we tell you if mitt romney walked a we with a car or a job or some other lovely parting gift let's take a trip down memory lane. after the 1996 election, president clinton invited republican bob dole to the white house, and dole left with the presidential medal of freedom. in 2008, president elect obama invited john mccain to his chicago offices and mccain got a meeting. and as for mitt romney, he got a meal. the president treated mr. romney to a lunch of